The Israel international was Chris Hughton's first signing when he arrived from Celtic in January 2015. He has since played 110 games for Albion and scored four goals.
Kayal, 30, was pleased to put pen to paper on a new deal and said, “I’ve been here for three-and-a-half years now after arriving in January 2015, and I’ve been part of something unbelievable by getting this club to the Premier League.
“I am one of the old boys in the dressing room now, and I am happy to continue here at the club.
“I am very pleased with the trust which the gaffer has given me, and I want to say thanks for that.
“There have been so many exciting times here, a few bad ones too with injuries, but that’s history and now I’m looking forward to helping the club achieve what they want to this season.
“My family and I really enjoy being here. Seeing the club reach the next level is unbelievable.”
Seagulls boss Hughton said: “I am delighted for Beram, he has been an important member of the squad and a very loyal servant to the club ever since he joined us almost four years ago.
“He is a player I know I can rely on, and he demonstrated his dependability on Saturday against Spurs when he came on early in the game, and I thought he was excellent for us in midfield.
“He’s been through some tough times as well, coming through a couple of bad injuries, but he has always come back stronger and been a reliable member of the squad.
“Beram adds great competition for those midfield places, and I am really pleased he’s agreed to extend his time at the club.”
Kayal is set to make his first Premier League start of the season in tomorrow's match at Manchester City.